Major Corporate Social Responsibility
Organizations have great responsibility for the welfare of the society and the environmental protection. The major corporate social responsibility are as follows:
Responsibility towards Shareholders:
Shareholders invest capital in the business and bear risks. They want a return on their investment from the business. So, they have an interest in the development and prosperity of their business. Therefore, the business organization has a responsibility toward them as they invest money and grow the business.
The main responsibilities of business towards shareholders are proper utilization of investment, fair dividends, fair interest, providing up-to-date information on financial transactions, maximizing the value of investment, allowing them to participate in planning and policy-making, etc.
Responsibility toward Customers:
Customer satisfaction is the ultimate goal of a business organization. They are the key source of earnings. Business organizations need to satisfy their customers by producing goods and services of their choice and demand . Business cannot be successful unless customers are satisfied.
The responsibilities of business toward customers are providing quality products at reasonable prices, adequate quantity when needed, good behavior, avoiding unfair practices like black marketing, providing after-sales service, etc.
Responsibility toward Employees:
The success of a business largely depends on motivated employees. They are the assets of the business and their welfare and well-being should be the main concern of the management. They should be treated as a part of the organization and encouraged them to produce higher productivity.
They should be properly trained and provide monetary and non-monetary benefits. The main responsibilities of businesses toward employees are to provide meaningful jobs and job security, to provide fair wages and other benefits, to provide welfare facilities like sports, education, medical, etc., to create a favorable working environment, and to conduct training and development programs.
Responsibility toward Government:
All business activities should be conducted within the rules and regulations of the government Government protects and controls the activities of business. It allows business organizations to operate within certain norms.
Therefore, the cooperation of the government is essential to the business sector. The business organization must fulfill its responsibilities toward the government by following government rules and laws, paying different taxes such as VAT, income tax, customs duty, etc., avoiding monopoly and unfair trade practices, supporting national problems such as unemployment and poverty, etc.
Responsibility toward Society or Community:
Business Organizations perform their business activities in the society. Their success also depends on the well-being of the whole society. Therefore, business organizations have some responsibilities toward society or the community.
They are to create employment opportunities for the people, to maintain environmental ecology, proper utilization of society’s resources, to promote the program of community welfare services, to maintain social and cultural values, etc.